The success and vibrancy of our community is a function of the economy. We should all be concerned about the fine line our government’s walk in making policy decisions affecting the competitiveness of business.
 
Since the 2015 provincial election, Albertans have seen many increases to the cost of doing business. The recently implemented carbon tax has increased the cost of goods and will continue to do so as the tax will increase on an annual basis. We’ve also seen big increases to minimum wage, and will continue to do so until it reaches the government’s goal of $15 per hour. There have also been increases to payroll taxes, corporate and personal income taxes, and municipal taxes as well. The ongoing Power Purchase Agreement lawsuit that has the Government of Alberta suing the municipally owned Enmax and proposing retroactive legislation to punish utility companies adds serious investment uncertainty and risk by damaging our reputation and the sanctity of contracts.
 
These changes threaten the overall competitiveness of our region as a place to do business by adding layers upon layers of costs and liabilities that are not found in other jurisdictions. This is especially the case since President Trump backed out of the Paris Climate Agreement, is working towards reducing personal and corporate tax rate, and has been slashing regulations in the United States.
 
While some businesses are rooted here, many make rapid shifts in investment and spending to neighbouring jurisdictions when cost benefits arise.

Everybody in Alberta remembers when then Premier Ed Stelmach initiated a royalty review back in 2007. The idea was that we as Albertans were not receiving our ‘fair-share’ from energy royalties. By increasing royalty rates, the Alberta government hoped for an additional $1.5 billion in revenue. Instead the change sent billions in drilling and service activity outside of Alberta and eventually forcing Premier Stelmach to roll back the changes.

When British Columbia introduced their carbon tax, they made cuts to personal and corporate tax rates to partially offset some of the added costs. Alberta will reduce the Small Business Tax by 1 percent and will send income-tested rebates to individuals and families. While small business will surely appreciate the potential savings (for those fortunate enough to still be turning a profit), we should also recognize that over two-thirds of Albertans are employed by large companies.
 
For many years, much of the success of Alberta’s economy was driven by what can only be compared to a modern-day gold rush buoyed by extremely high oil prices. Many economists and business people think we’ll never return to the record level energy prices we saw throughout most of the early 21^st century. Without those high energy prices we’ll have to rely on a competitiveness environment that allows business to thrive.
 
If Alberta is to remain competitive and continue to fight climate change, our governments will have to make serious policy changes to ensure Alberta remains an attractive place to own, operate, and make business investments. This should especially be the case considering the current fragility of our weakened economy and President Trump’s plans for the United States. There are only so many cost increases Albertans can handle.